AT&T to raise broadband prices

The $5 price hike will affect the states where it acquired new customers through its buyout of BellSouth.

The change will not affect new customers signing up for the company's slowest tier, which offers download speeds of 768 kbps. But current customers on the three slowest tiers will see their monthly rate go up.

Currently AT&T charges $14.99 per month for the 768kbps, $19.99 for the 1.5mbps, and $24.99 for the 3mbps tiers. With the change, effective in March, these rates will change to $19.99, $25, and $30 respectively.

Most of AT&T's 14.2 million high-speed customers are on the 1.5mbps plan, it said.

The $10 offer for new customers and $19.99 standalone DSL options will not be affected, nor will the price change for its U-Verse TV service which relies on the DSL network for data purposes.

CEO Randall Stephenson seemed to suggest in comments to the media that a general softening of the overall DSL market due to the economic slowdown made price hikes necessary. Even so, AT&T is confident that it is still able to attract customers even with the higher prices.